Saudi AUM to Exceed $500 Billion by 2030

Saudi Arabia’s asset management sector expanded by an average of about 12% annually over 2015-2024, with total assets under management (AUM) reaching about $295 billion as of 31 March 2025, according to S&P Global.

In its latest report on Saudi Arabia’s asset management industry, S&P Global expect that AUM will continue to increase at a healthy pace and that it has the potential to exceed $500 billion by year-end 2030, also subject to market conditions.

This is due to ongoing regulatory efforts and continued growth in debt and equity markets, as well as the increasing availability of exchange-traded funds (ETFs), real estate investment trusts (REITs), and other retail and institutional products.

Local capital markets would benefit from a robust institutional investor base in Saudi Arabia through potentially stronger local and international capital inflows, as well as higher liquidity.

Additionally, a well-established asset management industry would give the young and growing Saudi population access to a wider and more diversified offering of investment and savings products, which could increase long-term saving ratios.

Latest Key Initiatives

Over the past decade, Saudi authorities have launched major initiatives to support the development of local capital markets. The development of the asset management sector is also a priority.

Several ongoing programs aim to increase the attractiveness of the asset management sector among local and global investors. For example, initiatives exist to expand the local institutional investor base, introduce new and innovative retail and institutional products, and strengthen the underlying domestic asset classes.

Additionally, authorities are trying to position Saudi Arabia as an emerging hub for capital flows by attracting global and regional investments, fund management business, and global capital market institutions and asset managers.

They are also working with local and global players to further develop ETFs and REITs that give investors access to Saudi assets. Over the past few years, key institutions have already launched various ETFs which make it easier to invest in Saudi securities, the report said.

“We believe the rise in Saudi ETFs that are listed overseas will be supportive of liquidity in the secondary markets for the underlying Saudi asset classes. This is because the ETFs attract institutional and retail investors from overseas,” S&P said.

Supportive Regulations

In July 2025, the Saudi Capital Markets Authority (CMA) published various amendments to investment fund regulations to further improve transparency, disclosure, risk management, and the protection of investment funds.

Among others, public funds are now able to invest in privately placed debt instruments, which could benefit the emerging private credit sector in the country, the report said.

Growth And Asset Allocation Trends

At this stage, the market is small and lacks a well-diversified issuer base. Total AUM in Saudi Arabia’s asset management sector increased by about 12% annually over 2015–2024 and reached about $295 billion in March 2025.

Albeit expanding, Saudi Arabia’s debt markets are still at an early stage. Based on data by the CMA, public and private funds allocate most of their AUM to real estate as an asset class (36%), followed by equities (34%), and debt and money market instruments (13%).

Private funds expanded quicker than public funds. The number of private funds has increased almost six-fold since 2013. Private funds account for about 50% ($148 billion) of AUM in Saudi Arabia’s asset management sector, followed by discretionary mandates at close to one-third ($96 billion) and public funds at close to 18% ($51.5 billion).

Real estate accounts for most Saudi private fund investments. Real estate, which is a very popular asset class in the Gulf Cooperation Council (GCC) region, contributes almost 50% ($72.2 billion) to Saudi private funds’ AUM, followed by equities. Real estate investments are the primary focus of almost half of all private funds in the country, followed by equities.

Discretionary portfolio mandates in Saudi Arabia tend to allocate most of their investments to equities. As of 31 March 2025, equities accounted for about $47.4 billion or 49% of Saudi discretionary portfolio mandates’ total AUM.

In contrast, public funds’ asset allocation is more balanced, with about 31% in money market instruments, 25% in equities, and 13% in debt instruments, as of the same date, the report noted.